How Tesla Motors, Inc. Performs Year-to-Date?

03-Jul-2014

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Tesla Motors, Inc.(TSLA) trading share is around $239. Now, the question – is TSLA an OUTPERFORM, WAIT AND SEE, or STAY AWAY?? Here we shall discuss the stock along with relevant sections, which you can find in Wall Street’s investment CHEAT SHEET!

Just to give an overview of Tesla Motors – it is a company that sells, manufactures, designs and develops electric vehicles as well as its powertrain components. In addition, they also offer various services including the development of systems and components for electric powertrain as well as sells them to automotive manufacturers. Its products can be found through Tesla stores and online. Both customers and automotive companies are looking to save on fuel – and what better way to do this than use electric vehicles?

According to Elon Musk, the CEO of Tesla Motors, it was not his intention to become the company’s CEO and he tried relatively hard not to be the CEO. It is without a doubt that Musk is a great innovator but whether he is a good leader or manager – that’s another story. Many wondered whether his intention is for Tesla to be a hit and run experience where he will let another person take his place afterwards or he would stay for a while. Today, the company has traversed the hardest parts of development and the adoption of its products has already kick-started and this makes everyone wonder whether the great innovator is already leaving his seat. On June 3, Tesla Motors held its annual shareholder meeting where Musk must face the exciting, fact-instilled and inspiration Q&A was on session. First off, Musk expressed his proudness to the company’s accomplishments in flying colors and there were various points where he bragged about the company including the mileage of Tesla vehicles that reached 344 miles without any serious incident.

Since the software is the nerve center of the vehicles, Tesla motors can determine the exact mileage of its vehicles all across the globe. They have online access of data about its vehicles and it is useful in tracking the safety, reliability and satisfaction of customers so that the company can make adjustments when necessary. Musk has addressed the crowd during the meeting that the company limited by production rather than limited by demand. One of their biggest issue is the supply of battery cells, which they have gradually dealt with over the year – going into the next. Tesla’s goal is to eventually launch what they call a Gigafactory, which is proposed to solve the problem on battery supply. This long-term plan may have implied that Musk will be with the company for a while but nothing has really been supported by facts. However, Musk stated on the presentation that his goal is for people to love their vehicles. In fact, he added that one of his goal is to make people love their Model S more than their well-invested houses. He also added that this may have already been happening in some situations. This hinted that he will be sticking with the company for a while.

The stock of Tesla Motors has been struggling over the last few quarters just to make progress. However, the stock is currently making a trend and it is set to continue to make gradual progress. If you look at the price trend and the strength accompanying it, analyzing the company’s stock would be easy just using key moving averages. So what are these key moving averages? Key moving averages refers to the trading trend done by Tesla Motors above the rising key averages. This signals a neutral to bullish price trend for a short while.

The implied volatility as well as the company’s skew levels will help in determining whether investors are bearish, bullish or neutral.

What does this refers to? This refers to the fact that traders and investors are buying substantial amount of call and put options contracts when compared to the last couple of months – 30-90 trading days, that is.

Currently, it shows that the average demand comes from call buyers and sellers but low demand from put buyers or high demand by put sellers. In the next two months, there have all been neutral to bullish investors. Overall, the investors are buying substantial amount of call and put option trades but they are leaning to neutral and bullish in the coming two months.

The increase in stock prices often strongly correlates with the rise in earnings and growth rates of revenue. In addition, the last earnings in the four quarters the announcement reactions can help determine the sentiment of investors on Tesla Motors stock. How important are the last four quarter earnings and revenue growth numbers for Tesla Motors are, what does it look like and how does the market like the numbers?

There has been a rise in earnings and revenue figures that Tesla Motors have been having in the last four quarterly earnings. Getting from these figures, the market has embraced the numbers and satisfied with the Tesla Motor’s recent announcements especially their earnings.

How is the performance of Tesla Motors stock compared to its peers such as – General Motors (NYSE:GM), Ford Motor (NYSE:F), Toyota Motor (NYSE:TM) and the industry?

The answer – Tesla Motors has done relatively well as performance leader within the year and up to this date.

Conclusion

Tesla Motors provide the market with electric vehicles that companies and consumers are already opting to have rather than luxury vehicles. Despite its struggles to make progress of its stock, it is shown to have current increasing trend. In fact, their last four quarterly earnings have shown that the revenues are rising, which kept the investors satisfied and pleased. They have done relative to other vehicle manufacturing company and the industry. Tesla Motors will continue to be a performance leader and it is expected that the company will OUTPERFORM.

 

Author Profile: Written in behalf of Mountain Crest Products – a Texas based manufacturer of premium digital tire gauge for automotive cars and bikes.

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